| viXra.org > Economics and Finance > 2406 |
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| viXra.org > Economics and Finance > 2406 |
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[2] viXra:2406.0031 [pdf] submitted on 2024-06-08 03:43:43
Authors: Benjamin Chung
Comments: 52 Pages.
In an effort to better understand the mechanisms underlying finance and economics, this investigation simplifies an economy to its most basic form —an economic space of assets consisting of atomic equity and debt. By applying the concept of diffusion to debt, the corresponding behaviour of equity was investigated. The findings reveal that debt and equity cannot both diffuse or concentrate simultaneously at the macroscopic scale of a market-driven economy, and that equity only concentrates in an economy experiencing robust economic growth. Additionally, if diffusion is a required assumption for homogenous mixing, and debt transforms into equity with some probability, then an economic system can be modelled as a system of competing viral infections within a susceptible population, or market. It is shown how parameters of infection correspond to measures of sales and marketing, suggesting that the product/business lifecycle curve is very likely an infection curve. This Economic Infection model provides a unified framework that can incorporate metrics used in sales and marketing —such as convserion rate, churn rate, engagement rate, etc— to forecast revenue and market share growth for market competitors whose values can be estimated. Also, a preliminary decomposition of Price Elasticity of Demand within this economic infection framework reveals multiple contributing elasticities (including the Price Elasticity of Supply) which producers and retailers can manipulate to shift PED more positive or negative. These decomposed elasticities align with several known pricing strategies aimed at driving sales quantities, with one particular elasticity identified as a possible driver of demand-pull inflation.
Category: Economics and Finance
[1] viXra:2406.0019 [pdf] submitted on 2024-06-05 19:53:11
Authors: Tianyu Yuan
Comments: 15 Pages.
This paper aims to leverage the advancements in General Computer Control (GCC) to improve the efficiency and effectiveness of risk management operations in financial institutions. Specifically, we introduce an LLM-based Robotic Process Automation (RPA) framework designed to enhance front-line employee work, adapt to the specific needs of financial institutions, and automate tasks requiring minimal cognitive effort. To demonstrate the effectiveness of our proposed framework, stress testing, a common task for risk management department, is used as a case study. The results show that the RPA system can improve efficiency, reduce costs, and minimize errors, all without significantly altering the existing workflow. Moreover, to address customer information security and prompts copyright protection issues, a storage method that separates the server from the client is used. Finally, empirical evidence implies that even models with weaker capabilities can achieve the desired work objectives when guided by detailed prompts.
Category: Economics and Finance
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